By Arjun Panchadar
(Reuters) – U.S. stock index futures fell on Monday as President Donald Trump’s comments dampened expectations around a U.S.-China trade deal, while escalating violence in Hong Kong added to investor worries.
Hopes of a “phase one” deal to end the damaging 16-month trade war and largely upbeat corporate earnings have sparked a rally that helped the three major stock indexes close at record highs on Friday.
But Trump said on Saturday that the United States would only make a deal if it was the “right deal” for America, adding that the talks had moved more slowly than he would have liked.
Trade-sensitive stocks Caterpillar Inc (N:) Advanced Micro Devices Inc (O:), Micron Technology (O:) and Intel Corp (O:) shed between 0.8% and 1.3% in premarket trading.
With the third-quarter earnings season drawing to a close, attention will now be on economic data, as well as comments from Federal Reserve Chair Jerome Powell later this week.
At 7:34 a.m. ET, were down 113 points, or 0.41%. S&P 500 e-minis were down 11.5 points, or 0.37% and were down 35.5 points, or 0.43%.
Continuing violence in Hong Kong also hit sentiment after police shot and wounded a protester in the 24th straight week of pro-democracy protests in the Chinese-ruled territory.
Qualcomm Inc (O:) fell 1.8% after Morgan Stanley (NYSE:) downgraded the chipmaker to “equal-weight” from “overweight”.
Cisco Systems Inc (O:) dropped 1.3% as Piper Jaffray cut its rating on the networking equipment maker to “neutral” from “overweight”.
SunPower Corp (O:) gained 3.8% after the solar cell and panel maker said it would split into two separate publicly-traded companies.
Lipocine Inc (O:) slumped 67% after the U.S. Food and Drug Administration declined to approve its oral drug to treat a condition that results in lower production of sex hormone.
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